© Reuters
By Ambar Warrick
Investment.com – Gold prices edged higher on Thursday, with most other precious metals marking small gains after the US dollar rally appeared to have paused.
As of 2056 PM ET (0057 GMT), trading 0.1% higher at $1,767.41 an ounce. better, up 0.4% at $1,783.60 an ounce.
rose 0.1%, while adding 0.6% after a sharp 1% drop in the past two days.
Precious metal prices rose as the US dollar cooled down after two days of gains. The dollar index is up nearly 1% over the past two days after hawkish comments from two Federal Reserve members raised expectations of stronger interest rate hikes this year.
San Francisco Fed President Mary Daly and Chicago Fed President Charles Evans have both signaled that inflation has not cooled in the country and that the Fed is likely to raise rates further to counter rising prices.
Potentially escalating US-China tensions have also boosted safe-haven demand for the greenback.
Copper was trading down 0.1% in Asian trading on Thursday. decrease in a similar range.
While gold appears to have rallied over the past two weeks, the outlook for the yellow metal is dimmed by the prospect of a rate hike this year. Most other precious metals are also expected to see downside action as the Federal Reserve continues to tighten monetary policy.
Industrial metal prices fell 0.2 percent to $3,4710 a pound. decreased by 0.8% while increasing slightly.
Copper prices fell sharply this week following a series of weak manufacturing PMIs from around the world. This trend of weakening factory data is expected to weigh on industrial metals in the coming months.
